Breakout Alert: Nifty breaks above 20-DMA; can rally towards 23,000-mark

Technical charts suggest that the Nifty, Nifty MidCap and the SmallCap indices can potentially rally up to 6 per cent if they manage to sustain above the short-term moving averages.

The National Stock Exchange (NSE) Nifty 50 index has rallied over 1.16 per cent or 260 points to a high of 22,769 in intra-day trade thus far on Tuesday. Amid this rally, the Nifty 50 index has conquered its 20-DMA (Daily Moving Average) and was also seen quoting firmly above the super trend line on the daily scale; thus implying a breakout.  As per the daily charts, the near-term bias for the Nifty has now turned favourable, with the 20-DMA at 22,550 levels as the key immediate support; below the recent lows around 22,300 levels shall act as a good cushion for the market going ahead.  Similarly, the Nifty MidCap 150 and the SmallCap 250 indices have jumped over 1 per cent each in today's trading session.    Here's a technical check on these 3 key benchmark indices.  Nifty 50  Current Nifty level: 22,760  Upside Potential: 6.2%  Support: 22,550; 22,300; 22,000  Resistance: 23,000; 23,050; 23,450; 23,800  The Nifty opened with a gap-up above its 20-DMA, and since then has not looked back so far in today's trading session. Technical chart shows, the Nifty now seems on course to test its 50-DMA on the upside around 23,000-mark; above which resistance for the index is seen at 23,050 levels. CLICK HERE FOR THE CHART  The medium-term chart suggests that if the 50-DMA hurdle is taken-off, the Nifty could witness a meaningful pullback to 23,450 - 23,800 levels. Having said, the upside on the Nifty seems capped around 24,170 levels.  In the recent market fall, the Nifty seems to have found consistent support around its 100-WMA (Weekly Moving Average), which now stands at 22,000-mark. Going ahead, the key for the Nifty remains sustenance above 22,550 - 22,300 support zone.    Nifty MidCap 150  Current Nifty MidCap level: 18,275  Upside Potential: 4.2%  Support: 17,865  Resistance: 18,235; 18,800  The Nifty MidCap index is seen testing resistance around its 20-DMA at 18,235 levels. The index needs to break and sustain above the same for fresh upside momentum. On the upside, the MidCap index can potentially rally to 18,800 levels; above which a test of 19,050 levels seems likely. The Nifty MidCap index too seems to have found support around 100-WMA, which now stands at 17,865. CLICK HERE FOR THE CHART  Nifty SmallCap 250  Current Nifty SmallCap level: 14,400  Upside Potential: 6.6%  Support: 14,000; 13,900  Resistance: 14,650; 14,800  The Nifty SmallCap index is seen quoting above its 20-DMA, which stands at 14,310 levels. The near-term bias for the index is likely to be cautiously optimistic as long as the index holds above the 14,000-mark; below which a major support for the index stands at 13,900 levels. CLICK HERE FOR THE CHART  On the upside, the SmallCap index is expected to face resistance around its 100-WMA at 14,650 levels, above which a key short-term hurdle stands at 14,800. Break and sustained trade above these hurdles can trigger a potential rally towards 15,350 levels.